CHAPTER 75 HOUSE BILL No. 2947 An  Act concerning municipal bonds; relating to interest thereon; amending K.S.A. 10-1009 and repealing the existing section. Be it enacted by the Legislature of the State of Kansas:

      Section  1. K.S.A. 10-1009 is hereby amended to read as follows: 10-
1009. (a) The maximum stated rate of interest which may be fixed on
fixed-rate bonds issued by a municipality or taxing subdivision of the state
of Kansas shall be determined on the day the bonds are sold and shall
not exceed the daily yield for the thirty-year ten-year treasury bonds pub-
lished by The Bond Buyer, in New York, New York, on the Monday next
preceding the day on which the bonds are sold, plus 2% (1) three percent,
if the interest on the bonds is excluded from gross income for federal
income tax purposes or (2) four percent, if the interest on the bonds is
included in gross income for federal income tax purposes.

      (b) The maximum stated rate of interest which may be fixed on var-
iable-rate bonds issued by a municipality or taxing subdivision of the state
of Kansas shall be determined on the date on which the rate is determined
in accordance with the resolution or ordinance of the issuer and shall not
exceed the daily yield for the thirty-year ten-year treasury bonds pub-
lished by The Bond Buyer, in New York, New York, on the Monday next
preceding such date, plus 2% (1) three percent, if the interest on the bonds
is excluded from gross income for federal income tax purposes or (2) four
percent, if the interest on the bonds is included in gross income for federal
income tax purposes.

      (c) Except as provided for variable rate bonds, the maximum rate of
interest specified in this section shall be applicable to bonds issued after
the effective date of this act pursuant to proceedings initiated either be-
fore or after the effective date of this act. The maximum rate of interest
on variable rate bonds issued prior to the effective date of this act shall
be the higher of (1) the maximum rate of interest specified by subsection
(a) or (b) of this section, as in effect prior to the effective date of this act,
(2) the maximum rate of interest specified in this section or (3) the rate
for such variable rate bonds specified in the documents authorizing the
issuance thereof.

      Sec.  2. K.S.A. 10-1009 is hereby repealed.

      Sec.  3. This act shall take effect and be in force from and after its
publication in the Kansas register.

Approved April 17, 2002.
 Published in the Kansas Register April 25, 2002.
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